While the Australian property market continues to grow year on year, new research would suggest the pace of growth is starting to slow.
According to the CoreLogic RP Data combined capital city index, the property market recorded a 0.5% drop over the three months to November 2015, which is the first quarterly fall in the Index since June 2014.
This quarterly drop in values took the annual rate of growth for 2015 to 8.7% - down significantly on the two years prior.
Throughout 2015, Sydney and Melbourne were once again the standout performers, with the capital cities recording dwelling value growth of 12.8% and 11.8% respectively. Canberra placed third in terms of value growth, with property prices climbing 4.5% over the course of 2015.
This data makes it clear that the capital city housing markets are diverse and impacted by different events. For example, the economies of Sydney and Melbourne are relatively sheltered from the downturn in the resources sector and are benefitting from a very healthy services sector, while the mining states and territories are experiencing softer economic conditions and a sharp wind down in population growth.
Moving forward, it is likely that Sydney and Melbourne will continue to lead the way in value growth, albeit at a much slower pace.
Source: Tim Lawless, CoreLogic RP Data